Riot Blockchain Shares; The Reasons Behind the Recent Gains

Riot Blockchain NASDAQ:RIOT

Riot Blockchain (NASDAQ:RIOT)

Even though the larger cryptocurrency market is mainly in the green today, shares of Bitcoin miner Riot Blockchain (NASDAQ:RIOT) moved around 11.5% higher as of 2:05 p.m. Eastern Time today for no apparent reason.

Then What?

As of the time this article was written, the price of Bitcoin had increased by around 1.3%, and given that Riot Blockchain (NASDAQ:RIOT) is in the business of mining Bitcoin, the stock undoubtedly trades with a significant level of connection to the value of the most popular cryptocurrency in the world.

Riot Blockchain (NASDAQ:RIOT) released a report on its activities earlier this week and said that it had mined 374 Bitcoins in August, which is a fall of 15% compared to the amount of Bitcoins produced in August of 2021. In July, Riot only mined 318 Bitcoin tokens, representing an increase from that month’s total.

Riot Blockchain (NASDAQ:RIOT) and other Bitcoin miners have taken a significant blow due to the crypto winter; Riot’s stock has dropped by around 68%. The fact that Riot Blockchain (NASDAQ:RIOT) does not have excessive debt and around $270 million in cash and cash equivalents at the end of the second quarter is a positive development. However, it is difficult to predict when the crypto winter will end and when the price of Bitcoin will begin to recover.

What’s Next?

Riot Blockchain (NASDAQ:RIOT) is definitely not a horrible choice for a firm that mines Bitcoin, and its stock price might see a comeback once the rest of the cryptocurrency industry recovers, which I believe will ultimately occur.

In general, though, I am not a major supporter of businesses that mine Bitcoin since they keep a significant portion of their expenses regardless of whether or not the price of Bitcoin is increasing or decreasing. Riot Blockchain (NASDAQ:RIOT) has also taken many steps to dilute its owners’ holdings. Instead of gambling, I’d instead simply put my money on Bitcoin.

Featured Image-  Megapixl @Bonekot

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About the author: I'm a financial journalist with more than 1.5 years of experience. I have worked for different financial companies and covered stocks listed on ASX, NYSE, NASDAQ, etc. I have a degree in marketing from Bahria University Islamabad Campus (BUIC), Pakistan.